Issue 1
ALL-RUSSIAN CENTRAL EXECUTIVE COMMITTEE
COUNCIL OF PEOPLE'S COMMISSARS OF THE R.S.F.S.R.
DECREE
of December 22, 1924
ON ENTERPRISES AND COLLECTIVES ORGANIZED BY LABOR EXCHANGE COMMITTEES
TO PROVIDE EMPLOYMENT ASSISTANCE TO THE UNEMPLOYED
The All-Russian Central Executive Committee and the Council of People's Commissars of the R.S.F.S.R. hereby decree:
1. For the purpose of providing employment assistance to the unemployed registered with the intermediary bodies of the People's Commissariat of Labor, labor exchange committees, by agreement with the relevant trade unions, are granted the right to organize industrial and commercial enterprises, as well as labor collectives formed from the unemployed.
2. Enterprises and collectives under the authority of a single labor exchange committee constitute one association, headed by a board appointed by the labor exchange committee in agreement with the provincial trade-union council.
3. Management of the individual enterprises and collectives forming part of the association is entrusted to authorized representatives appointed by the committees in agreement with the relevant trade unions. The authorized representatives act on the basis of powers of attorney issued by the board of the association (Art. 2).
4. An association of enterprises and collectives under the authority of a single labor exchange committee, upon registration of its regulations with the relevant provincial labor department, enjoys all the rights of a legal entity.
5. In those cities where there is only one enterprise or one collective, the latter, upon registration of its regulations with the provincial labor department, is granted the rights of a legal entity.
Note. Associations of enterprises and collectives, as well as those collectives which, pursuant to Art. 5, enjoy the rights of a legal entity, when participating in tenders for state contracts and supplies are equated to state bodies.
6. The funds of enterprises and collectives consist of: (a) sums obtained from the operation of enterprises and the work of collectives; (b) nationwide and local subsidies; (c) other receipts.
7. Net profit obtained from the operation of enterprises and the work of collectives is placed at the disposal of labor exchange committees and is used exclusively to expand employment assistance to the unemployed.
8. The area of activity of enterprises and collectives is determined by the area of activity of the relevant labor exchange committee.
9. Associations of enterprises and collectives, as well as enterprises and collectives enjoying the rights of legal entities (Art. 5), are liable exclusively with the property belonging to them pursuant to Art. 6. Members of collectives bear no material liability for the obligations of the collective.
10. Labor exchange committees are granted the right to transfer enterprises that have become economically sound to economic agencies, by agreement with the latter.
11. Enterprises and collectives organized pursuant to this Decree, for the period during which they are under the authority of labor exchange committees, enjoy the following benefits:
(a) for six months from the time of organization, they are exempt from payment of the business tax and income tax;
(b) after the expiration of the above period, with respect to payment of the business tax and income tax, they are equated to cooperative organizations (pursuant to the Decree of the Central Executive Committee and the Council of People's Commissars of the U.S.S.R. of December 7, 1923 on tax benefits for cooperative organizations (Collection of Laws, 1924, No. 16, Art. 150));
(c) with respect to payment of other taxes and fees, as well as payment for premises provided to them and municipal services, they are equated to state bodies financed from the state budget;
(d) they are exempt from payment of social insurance contributions, and members of collectives enjoy all the rights of the insured under all types of insurance.
12. The limits of the application of the Labor Code to members of collectives, as well as to persons servicing enterprises, are determined by decrees of the People's Commissariat of Labor of the R.S.F.S.R. in agreement with the All-Union Central Council of Trade Unions.
The procedure for implementing this Decree shall be determined by circulars and instructions of the People's Commissariat of Labor of the R.S.F.S.R.
1 Kopeck.
Buffet Trading Collective. Kerch Association of Enterprises and Collectives under the Labor Exchange Committee.
